{"id":43378,"date":"2023-12-12T15:56:14","date_gmt":"2023-12-12T20:56:14","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/ftc-announces-cars-rule-to-fight-scams-in-vehicle-shopping\/"},"modified":"2023-12-12T15:56:14","modified_gmt":"2023-12-12T20:56:14","slug":"ftc-announces-cars-rule-to-fight-scams-in-vehicle-shopping","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/ftc-announces-cars-rule-to-fight-scams-in-vehicle-shopping\/","title":{"rendered":"FTC Announces CARS Rule to Fight Scams in Vehicle Shopping"},"content":{"rendered":"
The Federal Trade Commission has finalized a new rule<\/a>\u00a0to fight two common types of illegal tactics consumers face when buying a car: bait-and-switch tactics and hidden junk fees. The new rule is expected to save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year shopping for vehicles.<\/p>\n The Combating Auto Retail Scams (CARS) Rule also includes clear protections for members of the military and their families, who are targeted not only with bait-and-switch tactics and junk fees, but also deceptive information about whether dealers are affiliated with the military and other specific issues that affect servicemembers.<\/p>\n \u201cWhen Americans set out to buy a car, they\u2019re routinely hit with unexpected and unnecessary fees that dealers extract just because they can,\u201d said FTC Chair Lina M. Khan. \u201cThe CARS Rule will prohibit exploitative junk fees in the car-buying process, saving people time and money and protecting honest dealers.\u201d<\/p>\n The CARS Rule prohibits dealers from using bait-and-switch claims to lure vehicle buyers to the lot, including about the cost of a car or the terms of financing, the availability of any discounts or rebates, and the actual availability of the vehicles being advertised. It also tackles hidden junk fees \u2013 charges buried in lengthy contracts that consumers never agreed to pay. In some cases, these fees are for services or products that provide no benefit to consumers.<\/p>\n Vehicles are one of the most significant purchases that American consumers make \u2013 for many, a vehicle is the single most expensive item they will ever purchase. The CARS Rule targets illegal practices that capitalize on the challenging nature of buying a vehicle, particularly the often lengthy and opaque process that can leave consumers open to scams by unscrupulous car dealers.<\/p>\n What the CARS Rule Requires:<\/b><\/p>\n How the CARS Rule Affects Servicemembers<\/b><\/p>\n For members of the military, the issues addressed by the CARS Rule are compounded by dealers who prey especially on young servicemembers, for whom having a vehicle is often vital when stationed on sprawling military bases. Servicemembers have an average of twice as much auto debt as civilians. By the age of 24, around 20 percent of young servicemembers have at least $20,000 in auto debt, which creates a substantial challenge to servicemembers\u2019 financial well-being.<\/p>\n The CARS Rule prohibits dealers from lying to servicemembers and other consumers about important cost and financing information, and about whether the dealers are affiliated with the military or any other governmental organization. They also are prohibited from lying about whether a vehicle can be moved out of state (which affects servicemembers and their families, who must frequently move to new duty stations) and whether a vehicle can be repossessed (there are laws that protect many servicemembers from having their vehicle repossessed).<\/p>\n \u201cThe Department of Defense appreciates the FTC\u2019s CARS Rule,\u201d said Ashish S.\u00a0Vazirani, Acting DoD Under Secretary of Defense for Personnel and Readiness.\u00a0\u201cFor our service members and their families a car is an essential purchase, and this CARS Rule will help fight predatory practices that target our men and women in uniform. The Department is pleased to see the FTC issue the CARS Rule and believes it will contribute to service members\u2019 overall economic security and readiness.\u201d\u00a0<\/p>\n How the CARS Rule Was Created<\/b><\/p>\n\n